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Get your Accounting Business on Track with Bank Account Reconciliation Services
Reconciliation is an integral business part which manages business finances in the right manner. But this process is associated or linked to various data collections, which makes it a cumbersome one to handle. So, account reconciliation services are one of the best solutions to it. Get to know their real benefits in depth here:-
Accounting functions need to be performed in an accurate manner for the proper maintenance of financial records. Bank account reconciliation is an important process which needs to be followed by every business organization. It helps in keeping the accounting records of an organization accurate. By following this process properly the reasons behind the disparities between the balances displayed in the bank statement and the balance company’s records can be evaluated and understood.
The reasons behind disparities are generally unintentional errors like not recording some of the transactions either by the bank or by an organization. In order to get the accounting business on track, the account reconciliation services need to be performed at regular intervals of time. By utilizing the latest accounting technology, these functions can be easily performed. Commercial ventures that are serious about ensuring the accuracy of their accounts perform bank account reconciliation at least once every month.
Account reconciliation services can be performed effectively by following the below mentioned steps:
The first and foremost step in account reconciliation is ensuring that all the balances and dates in the statements are accurate. All the balances and dates must be checked properly.
There are various adjustments made in the accounting records of the company which is not displayed on the bank statement. These adjustments must be properly recorded.
The recording of outstanding checks generally leads to mistakes in the financial statements. The outstanding checks must be entered as soon as they are received. The summary of the sequence in which checks were received must be inspected properly. Special attention should be given to checks received towards the end of a particular month.
While entering outstanding deposits, some accounts ignore the time variance factor which leads to mistakes in the statements. This is an important factor which must be kept in mind.
The end balances of the assets and liabilities should match with each other, which prove the accuracy of the statements. In case the balances don’t match, the errors must be detected by going through the statements again and rectified.
Sometimes your bank charges some tax or interest on the transactions you did, these amounts are un-noticed, which eventually affect your balance sheet. So start reconciling your bank statement every month precisely, because human data entry is error-prone. So, it is better to cross-check every statement
Bank reconciliation is not a very complex process. It should not be avoided and should be performed efficiently. This will help in keeping a reliable monetary record of the business and help in future planning.
Cogneesol is a leading provider of outsourcing accounting services to business ventures around the globe. We are aimed at enabling business enterprises to reduce their operational costs and optimize their revenue earning potential. For more information, you can visit us at [email protected] or call us at +1 646-688-2821.
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